Striving for growth in 2020 to reach about 2%

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Paying special attention to promote the disbursement of public investment capital to promote growth. Artwork: Le Tien.

Stimulating three drivers of growth

Regarding the results of implementing the tasks in 2020, Minister of Planning and Investment Nguyen Chi Dung said that it is estimated that implementation of twelve major targets of the socio-economic development plan in 2020 there arefive reaching targets and two exceeding targets.

The Government is consistent with the viewpoint of maintaining macroeconomic stability, controlling inflation, having appropriate mechanisms, solutions and policies to stimulate three main growth drivers, including investment,export and consumption.

Striving to realize "dual goals", resolutely prevent and combat the Covid-19 pandemic, at the same time take advantage of opportunities, quickly recover economic activities, strive to achieve the highest level of goals and tasks in socio-economic development by 2020. In which, annual growth will reach about 2%, if the conditions are facilitated,we will strive to reach about 2.5%.

According to Minister Nguyen Chi Dung, the economy still has limitations accumulated in the development process,as the implementation of economic restructuring is still slow. The private economy is not really strong, SMEs account for a large proportion, while connection with FDI enterprises and participation in the value chain and production networks in the region and around the world is limited.

Currently, the Covid-19 pandemic is significantly reducing Vietnam's major growth drivers such as exports and domestic consumption. The tourism industry and many export industries are losing large numbers of potential customers.

The Ministry ofPlanning and Investment forecasts that in the following months, the domestic economy will continue to face many difficulties and challenges such as the decline in growth due to negative impacts from the Covid-19 pandemic and global economic recession.

The second outbreak caused direct losses to sectors such as tourism, transportation and import and export activities; production and investment sectors are also affected indirectly.

Trade tensions between major economies could become more complicated. Consumer sentiment remains unstable, continuing to negatively affect consumption scale.

Risks from a decline in global trade and significant economic loss due to Covid-19 among key trading partners, the possibility of higher fiscal deficits leading to increased public debt and risks from the system.

Paying special attention to promote disbursement of public investment

Regarding the growth scenario in 2020, Minister Nguyen Chi Dung said that the second wave of Covid-19in Vietnam affected all economic sectors, especially the service sector was heavily affected, and it has not recovered yet.

In that context, in order to achieve positive growth in 2020 and achieve the highest possible results, it is necessary to continue to implement in combination with building strong and drastic solutions to remove difficulties for production and business, business support, ensuring people's social security and promoting disbursement of public investment capital.

“It should be paid special attention to further promoting the implementation of tasks and solutions to disburse public investment capital plans, creating a driving force for economic growth. Promoting the disbursement of public investment capital is key to economic growth in the future, both helping to stimulate economic demand, while helping to consume raw materials and solve employment problems,” the Minister of Planning and Investment said.

It is expected thatin the socio-economic development plan for 2021, the Minister of Planning and Investment said that Vietnam's economy is still facing many challenges. Although the Covid-19 pandemic in the world shows signs of easing, there are many potential risk factors, unpredictable and highly likely to last for the whole year of 2021.

The global economic outlook is very difficult, major partner countries are in recession, it is difficult to recover in the short term and the ability to recover as before the Covid-19 pandemic will take about 2-4 years depending on the level of impact.

Regarding GDP growth in 2021, Minister Nguyen Chi Dung said that growth in 2021 is expected to reach 6.7%.